Transcription of PERFORMANCE-BASED CONTRACTING: A NEW TOOL IN SHIP …
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PERFORMANCE-BASED CONTRACTING: A NEW TOOL IN SHIP …
PERFORMANCE-BASED contracting : A NEW TOOL. IN SHIP MANAGEMENT? Abstract The shipping industry is ever more challenged by increasingly demanding performance requirements. However, PERFORMANCE-BASED contracting is hardly applied in the industry. Using this type of contracting in the relation between ship owners and managers could create a win-win situation: owners gain a competitive advantage through more aligned interests, while ship managers obtain rewards for their performance excellence. This paper reviews PERFORMANCE-BASED contracting in ship management by analysing two successful cases. The paper first reviews literature, then uses expert interviews as basis for qualitative research.
Performance-based contracting: a new tool in ship management? • Crewing management is the supply selection and insurance of a ship's crew. • Technical management maintains the mechanical systems on board and includes logistics of supplies in accordance with all applicable law and regulations.
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